Professional tax in Karnataka (FY 2026-27)
Karnataka exempts salaries below ₹25,000 a month entirely. Above that it is ₹200 a month, rising to ₹300 in February, for a yearly total of ₹2,500.
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How much you pay
- Nothing below ₹25,000 a month. Exactly ₹25,000 is taxable, because the schedule reads "₹25,000 and above".
- ₹200 a month from April to January and in March.
- ₹300 in February, added by Karnataka Act 33 of 2025 with effect from April 2025. The year therefore comes to ₹2,500, not the ₹2,400 many calculators still show.
Worked examples
Calculated with the same engine as the calculator, on a monthly gross salary:
| Monthly salary | What is deducted | Year total |
|---|---|---|
| ₹15,000 | Nothing | ₹0 |
| ₹25,000 | ₹200 a month, ₹300 in February | ₹2,500 |
| ₹50,000 | ₹200 a month, ₹300 in February | ₹2,500 |
| ₹1,00,000 | ₹200 a month, ₹300 in February | ₹2,500 |
What counts as salary
Monthly salary or wage including bonus, arrears and perquisites. A bonus is spread across the months it relates to, so a large annual bonus can push a salary over the threshold.
Who is exempt
- People aged 60 or over
- People with at least 40% permanent disability, with a certificate
- Blind, deaf or mute salary earners
- Ex-servicemen, and serving members of the armed forces and central para-military forces
- Anyone employed for 120 days or fewer in the year
Where these figures come from
Karnataka Tax on Professions, Trades, Callings and Employments Act 1976, Schedule Serial 1, as amended by Karnataka Act 14 of 2023 (threshold) and Act 33 of 2025 (February rate).
Does it reduce your income tax?
Only in the old regime. Professional tax is deductible from salary under section 19(1) of the Income-tax Act, 2025, and section 202(2) removes that deduction for anyone taxed under the new regime.
See what this means for your take-home pay in Karnataka